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Coforge Ltd

NSE: COFORGE BSE: 532541

1655.40

(0.10)%

Mon, 02 Feb 2026, 02:47 am

Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (2.3x coverage).
  • Dividends after 3 years are expected to be covered by earnings (1.6x coverage).
  • NIIT Technologies's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • NIIT Technologies's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Cash flow for NIIT Technologies is expected to increase by more than 50% in 2 years time.
  • NIIT Technologies's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • NIIT Technologies's earnings are expected to increase by more than the low risk growth rate in 3 years time.
  • NIIT Technologies is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
  • Performance (ROE) is expected to be above the current IN IT industry average.
  • An improvement in NIIT Technologies's performance (ROE) is expected over the next 3 years.
  • NIIT Technologies's revenue growth is expected to exceed the India market average.
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Cons

  • NIIT Technologies's earnings are expected to grow by 9.9% yearly, however this is not considered high growth (20% yearly).
  • NIIT Technologies's earnings growth is positive but not above the India market average.
  • NIIT Technologies's earnings are expected to increase but not above the low risk growth rate next year.
  • NIIT Technologies's net income is expected to increase but not above the 50% threshold in 2 years time.
  • NIIT Technologies's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • NIIT Technologies's revenue is expected to grow by 8.2% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • NIIT Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • NIIT Technologies is profitable, therefore cash runway is not a concern.
  • NIIT Technologies is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (6597.8%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 478x debt.
  • NIIT Technologies's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (0.6% vs 0.2% today).
  • Interest payments on debt are well covered by earnings (EBIT is 35.5x coverage).
  • NIIT Technologies's level of debt (0.2%) compared to net worth is satisfactory (less than 40%).
  • Low level of unsold assets.
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Cons

    management

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    Pros

    • Sudhir's remuneration is lower than average for companies of similar size in India.
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    Cons

    • The average tenure for the NIIT Technologies board of directors is less than 3 years, this suggests a new board.
    • The average tenure for the NIIT Technologies management team is less than 2 years, this suggests a new team.

    misc

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    Pros

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      Cons

      • NIIT Technologies has significant price volatility in the past 3 months.

      past

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      Pros

      • NIIT Technologies has delivered over 20% year on year earnings growth in the past 5 years.
      • NIIT Technologies used its assets more efficiently than the IN IT industry average last year based on Return on Assets.
      • NIIT Technologies has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
      • NIIT Technologies's earnings growth has exceeded the IN IT industry average in the past year (10.1% vs 6%).
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      Cons

      • NIIT Technologies's 1-year earnings growth is less than its 5-year average (10.1% vs 21.3%)
      • NIIT Technologies has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

      value

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      Pros

      • NIITTECH outperformed the IT industry which returned -10.1% over the past year.
      • NIITTECH outperformed the Market in India which returned -14.5% over the past year.
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      Cons

      • NIIT Technologies's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • NIIT Technologies's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • NIIT Technologies is overvalued based on assets compared to the IN IT industry average.
      • NIIT Technologies is poor value based on expected growth next year.
      • NIIT Technologies is overvalued based on earnings compared to the IN IT industry average.
      • NIIT Technologies is overvalued based on earnings compared to the India market.
      • NSEI:NIITTECH is flat (-0.8%) underperforming the IT industry which returned 8.5% over the past month.
      • NSEI:NIITTECH is flat (-0.8%) underperforming the market in India which returned 8% over the past month.

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      Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548) | The SEBI Registration No. allotted to us is INZ000313732. NSE Member Code: 90326 | BSE Member Code: 6808 | MCX Member Code: 57120 DP | CDSL: 12099800